1. What is the present value of $1,600.00 that will be received 9.5 years from now? Assume an interest rate of 11.00% compounded annually.
2. If you wanted to invest $800.00 in an account today and you wanted the account to be $1,400.00 6.0 years from now, what would the interest rate, compounded annually, have to be? Assume you make no additional deposits or withdrawals to or from your account.
3. Suppose you invested $1,100.00 in an account that pays 10.00% interest compounded annually. How many years would you need to wait until the account reached $3,000.00?
Assume you make no additional deposits or withdrawals to or from your account.